Lendio at a Glance

Lendio is an online small business loan aggregator that brings small business owners and small business lenders together on one platform. The site is free to use, and offers at least ten distinct loan programs, for every conceivable business need, from business acquisition to funding for commercial real estate. This increases the likelihood that you will be able to find both a lender and a specific loan program that will work in your situation.

Depending on your business and your credit profile, you may be able to obtain certain loans with interest rates starting in single digits. Other loan programs allow you to get credit using your cash flow or accounts receivable.

Service Profile

Lendio is not a direct lender, but a platform where you can be directed to the services of various lenders, based on your borrower profile. At least one of their loan programs allows you to obtain a loan if you are in business for as little as three months (note however that there are higher personal requirements for new or recently formed businesses).

The company is rated A+ (on a scale of A+ to F) with the Better Business Bureau, and 9.5 (out of 10) with TrustPilot. The site has also been featured on Forbes, CNBC and Entrepreneur.

Loan Features

Terms: 1 to 5 years for traditional business loans

Loan amount: $1,000 to $2 million

0% - 30.0% APR (or factor 1.2 to 1.8)

No minimum credit score

At least 10 different business loan types

Funding in as little as a few days

Prepayment penalties vary with loan program/lender

As little as 6 mos in business on certain loan types

Loan Application Information

The process starts with you completing a questionnaire that will match you up with the right lender and loan program. From there you will complete a more detailed application for the direct lender. The exact process will vary from one lender to another. The loan process takes between two days and two weeks with most lenders.

When you inquire about a loan on Lendio, the site will perform a soft credit pull, so that your credit score won't be negatively affected by the inquiry. Once you're paired up with an actual lender, a formal credit report will be pulled, but by then you'll be in the application process.

Basic requirements to get a business loan through Lendio include:

Gross revenue averaging consistently $10,000 for at least 6 months

Minimum of 6 months in business (less for certain loan programs), but generally at least 2 years in order to qualify for the best loans and pricing

No minimum credit score

No bankruptcies in the past three years

A business bank account

You must be current on your mortgage or rent payment

The business must be US based

The specific documentation required to get a business loan through Lendio varies from one lender to another, and also depends on the type of loan being applied for. Typically, an application will require at least the following:

A signed loan application

6 months of current business bank account statements

Mortgage or landlord verification

Because Lendio is a business loan aggregator, they offer access to at least 10 different types of loans, which are summarized below:

LOAN TYPE

LOAN AMOUNT

APR

TERMS

Business Credit Cards

$100 - $50,000

0% to 25%

1 to 2 month

Equipment Leasing

$20k - $1 million

8% to 25%

2 to 10 years

ACH Cash Flow Loans

$1k - $200k

Factor 1.2 to 1.8

6 to 12 months

Line of Credit

$2k - $100k

8% to 25%

1 to 6 months

Merchant Cash Advance (MCA)

$1k - $250k

Factor 1.2 to 1.8

3 to 12 months

Term Loan

$15k - $500k

7% to 30%

1 to 5 years

Commercial Real Estate

$150k or more

4% to 8%

20 to 25 years

Factoring (AR/PO)

Up to 85% of AR

Fee 8% to 25%

1 to 3 months

Large SBA

$200k or more

Less than 10%

7 or more years

Express SBA

$1k - $100k

7% to 15%

1 to 5 years

Lendio does advise that certain business types are considered "restricted industries" that will have difficulty getting a loan through the platform. Those businesses include hunting, fishing & forestry, auto dealers, gambling, legal services, non-profits, mining, commercial real estate and insurance businesses.

Your information on Lendio is protected by the same 256-bit encryption that banks use, and includes auditing, back-ups and encrypted login information.

Repayment Terms

Loan terms range anywhere from one month to 25 years, depending on the type of loan you need and are approved for. With some loans, repayment will be accomplished through a percentage of your monthly business receipts being automatically transferred to the lender on a daily basis. With others, you will have scheduled monthly payments.

Fees will be determined by each individual lender. Interest rates will be within the ranges appearing on the chart above for each loan type. Some loans do impose a prepayment penalty, while others do not.

Help & Support

Lendio can be contacted by phone at either their South Jordan, Utah, corporate office, or at their New York office. They can also be contacted though the social media, including Facebook, Twitter, Google+ and Linkedin. Email contact is available directly through the company website.

The company also has a comprehensive FAQ page that will answer most of your questions about the loan process, and about doing business with Lendio. The company also has a blog that provides real world examples of how Lendio loans have benefited small businesses.

Summary

Lendio could be the perfect platform for your small business since it represents an entire marketplace for lenders of all kinds. You can take one loan type with one lender, then another loan with a different lender for a different purpose. This will provide you with an ongoing source of financing as your business needs require.

Physical Address

About Kevin Mercadante

Kevin Mercadante is a freelance professional personal finance blogger,
and the owner of his own personal finance blog, OutOfYourRut.com. He
has extensive backgrounds in both accounting and the mortgage industry.

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